Which of the following statements about public goods is not true?
A. They are only produced by government agencies.
B. They are non-excludable since those who do not pay for them cannot be excluded from enjoying them.
C. They will be under supplied by the private sector.
D. They bestow collective benefits on members of society.
Answer: A
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Do policy makers know the exact value of the fiscal multiplier?
a. No, economists have almost no idea of the value of fiscal multipliers. b. No, they are not known with complete accuracy. c. Yes, economists know the precise value of the multiplier. d. Yes, although there is a very small range of uncertainty in the value.
In the early 2000s, there was a strong black market for Chinese yuan. It is widely held that the Chinese yuan is undervalued. Based on this information, we know that China:
A. has flexible exchange rates. B. does not allow complete convertibility of its currency. C. has partially flexible exchange rates. D. has fixed but convertible exchange rates.
Refer to Figure 25.1 for an oligopoly firm. Assume that the existing price and quantity are $10 and 2,000 units. Which of the following statements is most likely correct?
A. Demand curves D1 and D2 both assume that rivals match any price changes. B. Demand curve D1 assumes that rivals do not match price changes. C. Demand curves D1 and D2 both assume that rivals will not match any price changes. D. Demand curve D2 assumes that rivals do not match price changes.
Refer to the data. If gross investment is $10 at all levels of GDP, the equilibrium GDP will be:
The following schedule contains data for a private closed economy. All figures are in billions. Use these data in answering the question.
A. $300.
B. $260.
C. $220.
D. $180.